The partnership agreement of the G&P general partnership states that Gary will receive a guaranteed payment of $14,100, and that Gary and Prudence will share the remaining profits or losses in a 45/55 ratio. For year 1, the G&P partnership reports the following results:

Sales revenue	$ 91,500
Gain on sale of land (1231)	7,500
Cost of goods sold	(53,500)
DepreciationMACRS	(15,600)
Employee wages	(11,100)
Cash charitable contributions	(5,300)
Municipal bond interest	5,450
Other expenses	(5,100)

Note: Negative amounts should be indicated by a minus sign.

B). Compute Gary's share of self-employment income (loss) to be reported on his year 1 Schedule K-1, assuming G&P is a limited partnership and Gary is a limited partner.

C). What do you believe Gary's share of self-employment income (loss) to be reported on his year 1 Schedule K-1 should be, assuming G&P is an LLC and Gary spends 2,000 hours per year working there full time?

D). How much self-employment tax will each partner pay assuming none has any other source of income or loss?